Competition and Concentration in the New European Banking Landscape

40 Pages Posted: 19 May 2006

See all articles by Christos Staikouras

Christos Staikouras

Athens University of Economics and Business - Department of Accounting and Finance

Anastasia Koutsomanoli-Filippaki

Bank of Greece - Economic Research Department

Abstract

This paper measures the degree of concentration and competition in the enlarged European Union (EU) banking environment over the period 1998-2002. In the empirical part we opt for a methodology as proposed by Panzar and Rosse based on a nonstructural estimation of market competition. Our results suggest that European banks were operating under conditions of monopolistic competition and that bank interest revenues in the 10 new EU member states was earned under conditions of higher competition than those that existed in the old EU banking countries. The opposite result was observed for total operating revenues. Smaller banks earn interest income in a less competitive environment than larger banks, while the opposite is observed for total revenues.

Suggested Citation

Staikouras, Christos and Koutsomanoli-Filippaki, Anastasia, Competition and Concentration in the New European Banking Landscape. European Financial Management, Vol. 12, No. 3, pp. 443-482, June 2006. Available at SSRN: https://ssrn.com/abstract=903202 or http://dx.doi.org/10.1111/j.1354-7798.2006.00327.x

Christos Staikouras (Contact Author)

Athens University of Economics and Business - Department of Accounting and Finance ( email )

76 Patission Street
Athens, 104 34
Greece
+30 210 8203 459 (Phone)

Anastasia Koutsomanoli-Filippaki

Bank of Greece - Economic Research Department ( email )

21 E. Venizelos Avenue
GR 102 50 Athens
Greece

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
19
Abstract Views
1,149
PlumX Metrics